Foreign nationals who wish to establish and run their own business in Norway must obtain a specific residence permit for self-employed persons. This article outlines the requirements, application procedures, and conditions for obtaining and renewing such permits under the Norwegian Immigration Act Section 25 and Immigration Regulations Section 6-18.
Key Requirements for Self-Employed Residence Permits
Skilled Qualifications
To qualify for a residence permit as a self-employed person, applicants must have skilled worker qualifications. This means the applicant must:
Have completed education equivalent to at least three years of upper secondary school
Hold a trade certificate
Have completed university or college education, or
Possess special qualifications
For special qualifications, detailed documentation must show that extensive work experience has provided competence equivalent to formal education. If the applicant's profession requires legal authorization or approval (such as healthcare professionals, electricians, etc.), this must be obtained if the work to be performed requires this qualification.
Relevance of Qualifications to Business Activities
The applicant's work in the business must require skilled qualifications, establishing a clear connection between the business activities and the applicant's professional qualifications. This assessment is individual and specific to each case.
For a self-employed person running a business alone, their primary qualifications should be in the field where they will work most. For example, a person establishing a plumbing business should be a qualified plumber. However, if the same person will employ plumbers and serve as the managing director, they could alternatively have qualifications in economics, accounting, or similar fields.
For businesses providing services that cannot be linked to specific professions, the applicant's explanation of which qualifications their work requires will be emphasized in the assessment.
Permanent Business Operations
The business must be operated permanently. It should be probable, based on the business purpose, that operations will continue actively for at least three years. Evidently short-term operations will not qualify under these regulations.
Business Structure and Role
While no specific business structure is required, the foreign national must have a central, independent, and leading role in operations. If the business is established as a limited company (aksjeselskap) and the applicant will actively participate in operations as a shareholder, the application will be assessed under different regulations (Section 6-1 of the Immigration Regulations).
For other business structures, an individual assessment will determine whether the company form and the applicant's participation are consistent with the regulation's purpose. The work/activity should generally be equivalent to a full-time position for employees. For sole proprietorships, this requirement is generally considered fulfilled.
Financial Requirements
Two financial criteria must be met:
Subsistence requirement: The applicant must document sufficient funds to support themselves, currently set at 2.5 times the National Insurance basic amount (G).
Economic basis for business operations: The applicant must demonstrate that the business has sufficient economic foundation, making it probable that the self-employed person will obtain sufficient funds from business operations to meet the subsistence requirement.
Public grants from Innovation Norway, county municipalities, or other Norwegian public institutions may be included in the assessment of economic basis. However, benefits from the Norwegian Labour and Welfare Administration (NAV) are not considered grants.
The income from the business must always constitute the substantial part of the subsistence requirement. Any shortfall may be covered by personal funds.
Housing
The applicant must secure appropriate housing, such as a house, apartment, or similar accommodation that meets public requirements. For rental arrangements, a written lease approved by the landlord, housing cooperative, or other property administrator must be provided.
Exceptions to Running Exclusively Self-Employed Businesses
Generally, the applicant should exclusively operate a self-employed business. However, permission to take employment as an employee may be granted when special reasons exist. This might apply when:
A self-employed person needs to enter employment relationships for shorter periods to run their business
A physician with a private practice is required to work shifts at an emergency medical center as a municipal employee
An artist cannot obtain assignments as self-employed from certain major cultural institutions but only as an employee
The desire to supplement business income with employment wages or a general wish to perform other types of work is not considered a special reason.
Application Procedure
Where to Apply
First-time residence permits should generally be granted before entry into Norway. However, applicants with skilled worker qualifications may submit applications from Norway if they have legal residence and are not staying in connection with an asylum application or pending departure after asylum rejection.
Applications should primarily be registered electronically via the Application Portal. In exceptional cases, the Norwegian Directorate of Immigration's (UDI) paper form may be used.
Documentation Requirements
Applicants must submit multiple documents, including:
Completed application form
Passport or other valid identification
Documentation of education and qualifications
Business plan
Budget and financial forecasts
Documentation of secured housing
Evidence of subsistence funds
Documentation of business registration (if applicable)
Other documents as specified in the UDI's checklist
All documentation must be presented in original form with translations into Norwegian or English.
Decision Authority
First-time residence permits for self-employed persons are issued by the Norwegian Directorate of Immigration. In some cases, a permit during application processing may be granted by the police.
Permit Content and Duration
The residence permit is tied to the specific business that the applicant will operate. The business name and organization number (if available) will be specified in the decision. If permission to enter an employment relationship is also granted, this will be stated in the decision.
The residence permit:
Provides a basis for family immigration
Can form the basis for permanent residence
Is renewable
Is valid for one year
Renewal Process
A residence permit can be renewed if the basis for the first-time permit still exists. The subsistence requirement and the economic basis for the business must be reassessed with each renewal application.
The renewed permit must be tied to the same business as the previous permit and is valid for one year. If the renewal application is submitted at least one month before the permit expires, the applicant has the right to continued residence under the same conditions until the application is finally decided.
Conclusion
Obtaining a residence permit as a self-employed person in Norway requires meeting several specific criteria, including skilled qualifications relevant to the business, establishing a viable business with sufficient economic foundation, and securing appropriate housing. The permit is tied to a specific business operation and is initially granted for one year, with the possibility of renewal if the conditions continue to be met.
For potential applicants, careful preparation of business plans, financial documentation, and qualification evidence is essential to demonstrate compliance with all requirements. Consulting with relevant authorities or professional advisors before application is recommended to ensure all conditions can be satisfied.
